Hungary Payroll Guide

Q: How does payroll work in Hungary?

Employees in Hungary enjoy a flat rate of income tax, currently set at 15%, with Social Contributions of 18.5%. Employers also enjoy a low Social Contribution of 13%, among the lowest in Europe.

Q: What are the general employment rules?

All staff are eligible for a minimum of 20 days’ paid vacation each calendar year. Once staff members reach the age of 25, their entitlement increases by 1 day every three years throughout their twenties. This changes to every 2 years in their thirties and forties.

Q: What about dismissing an employee?

To dismiss an employee correctly, employers must follow a strict procedure which includes providing appropriate notice and issuing the termination documentation in writing. It is likely that the employee would be due a severance payment – the amounts vary depending on the employee’s age and length of service. Please consult one of our Employment Law Specialists before commencing a contract termination.

Hire employees in Hungary

Currency

Forint (HUF)

Population

9,772,756

Capital

Budapest

Official language(s)

Hungarian

Date format

yyyy.mm.dd.

Fiscal year

1 January - 31 December

Why use PeoplePay?

Guaranteed Compliance

Robust, compliant payroll and hiring supported by a dedicated Account Manager.

Local Expertise

Avoid international payroll and hiring pitfalls including language barriers, regulations and employment laws.

Lower Costs

Reduced administration, no need for an in-country team, and consolidated, outsourced payroll.

Hungary Payroll

Get peace of mind with a streamlined, fully-managed payroll solution for 1+ employees.

Hungary HR

Helping you hire compliantly, steering you through the local HR laws and regulations.

Hungary Payments

Consolidated, one-wire transfers to cover your entire global workforce – at competitive rates.

Hungary Payroll & HR Solutions

PeoplePay Global are here to assist with all your Payroll and HR requirements in Hungary

In-Country Employment Contracts

Creation of locally-compliant Hungarian employment agreements, ensuring you and your employees are protected in-country. Our experts in Hungary will create your bespoke agreement.

Payroll Processing

With global knowledge and local proficiency, we provide a fully-managed payroll solution that handles all the complex tasks, leaving you to focus on your business.

Tax and Labor Law

Hungary’s complex legislation can be daunting. Our in-country specialists are an extended member of your team, steering you safely through tax and labor law.

Regulatory Compliance

Our in-country professionals provide a wealth of experience and expertise in Payroll & HR compliance, ensuring your venture complies with ever-changing legislation.

Start-Up Implementation

We’ll ensure you’re operational promptly in accordance with local law, advising on the best route for your business, whether it’s via a legal entity or foreign registration.

Declarations and Audits

Our local specialists will manage and submit annual declarations on your behalf, guaranteeing accurate and prompt reporting to the authorities and also providing support for audits.

To discuss your individual needs get in touch today

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Frequently Asked Questions